Nifty Strategy EOD - 2nd September 2011

1. Do you have any trade right now in the market - Yes: Calls of DLF, JP Associates, Tata Motors and Idea Cellular were closed today. For my Puts i will repeat the process again down below.
2. Why did you go for this trade - Because my high volume nodes of 5060 were achieved today and nifty was not able to sustain itself above these nodes. Hence, i followed my plan and further took the judgement realtime as well. Moreover, we have a turn date on 4th September 2011.
3. How has the action been in these trades - We will see on Monday, though US markets are down by roughly 2% at the time of writing this post. Hence, Global Cues might be negative for us.  
4. Are the signals right now telling you to get out of the trade - we closed the position for the reason stated above.  
5. What are global markets doing right now - In the last few days US S&P500 has not been able to go above 1224 in sustained manner. Hence my bearishness that the bounce was almost over. After two day of Doji we had a bearish engulfing pattern was well in SP500 yesterday which for us was not good as far as external cues are concerned.  
6. What might happen on Friday - The index may open with a gapup due to positive global cues, contingent to the fact the US markets are positive tonight. After that surge, the internal strength or weakness of the market should take over. There is a turn date as well on 4th September 2011.  - Redundant now.
7. So whats your plan of action -  This is a sell on rally scenario we are right now in. Hence Longs should be treated with swiftness. Lets look at some of the critical levels of NIFTY which might give us a clue for general direction of our scrips as well - 5060-5080 is an important high volume node. Above that we move into the bracket of 5120-5130 levels. Above that we move into 5190-5200 levels. We have closed at 5001 and 1%gap up will take us through to first high volume node zone. So we will look for weakness at these levels and will book profits if we think we might be having a sell signal emerging. Ofcourse - we will not second guess the market, we will just follow it. Moreover our individual calls might and can act differently to the market. But remember - its a bounce from oversold conditions, its not a trend upwards. Update - Closed the Calls. 

FOR SHORT POSITIONS

1. Do you have any trade right now in the market - Yes: Puts for DFL, Rel Capital and JP Associates.
2. Why did you go for this trade - The trade is an old one, i have been holding these since last week.
3. How has the action been in these trades - I did not obey my signal, hence timed my entry wrong. But I think after the bounce is over these puts by 3rd week will yield profits. Moreover 4th is turn date. I know that i am trying to guess the market rather than follow it, but its an analysis for holding the puts.  
4. Are the signals right now telling you to get out of the trade - Going by the action today - No. Only a sideways market may hurt my positions.
5. What are global markets doing right now - In the last few days US S&P500 has not been able to go above 1224 in sustained manner. Hence my bearishness that the bounce was almost over. After two day of Doji we had a bearish engulfing pattern was well in SP500 yesterday which for us was not good as far as external cues are concerned.  
6. What might happen on Monday - Lets watch the global cues, until now they are red and RED big time. So we might have selling right from the word go. But we will wait and watch.
7. So whats your plan of action -  Going by todays volume charts - Nifty high volume nodes are at 5060, 5000, 4980, 4950 and 4850 after that. Yes these are too many bars, hence that means that quite a large amount of players are present between 4950-5000. Now this should act as support for nifty. We will see the volume charts of our scrips in another post. So, on Monday if we have a Marubozu day then i will add on to my intraday puts and close them at end of the session.